New
Q2 data from Synergy Research Group shows that the four leading cloud
providers all continue to maintain or grow their share of the worldwide
cloud infrastructure services market. Microsoft and Google have almost
doubled their quarterly revenues since Q2 of 2016 and both have
increased their market share substantially; but market leader AWS also
continues to grow its revenues more rapidly than the overall market, so
it too has increased its share despite its much larger scale. AWS market
share now stands at 34%, compared to 11% for Microsoft and 5% for
Google. IBM held its market share steady at 8%, thanks primarily to a
strong showing in hosted private cloud services.

Among the next 10 top-ranked cloud
providers, Alibaba and Oracle are achieving the highest growth rates.
Continuing recent trends, it is the lower ranked sized cloud providers
who in aggregate are losing share to the market leaders.

With most of the major operators having now
released their earnings data for Q2, Synergy estimates that quarterly
cloud infrastructure service revenues (including IaaS, PaaS and hosted
private cloud services) have now reached almost $11 billion and continue
to grow at well over 40% per year.

While
AWS, Microsoft and Google are the lead providers in IaaS/PaaS, IBM
continues to lead in hosted private cloud, where Rackspace and some
traditional IT service providers also feature more prominently than they
do in public cloud. Alibaba has now become the fourth ranked provider in
IaaS, thanks to very strong growth in its home Chinese market, helped by
aggressive expansion abroad.

“The increasing dominance of hyperscale players continues to play out,
with all four leading companies having cause to celebrate,” said John
Dinsdale, a Chief Analyst and Research Director at Synergy Research
Group. “While Microsoft Azure and Google Cloud Platform are doubling in
size, IBM continues to dominate in hosted private cloud and AWS is still
over three times the size of its nearest competitor. Some of the numbers
are actually pretty spectacular. The year-on-year market growth rate is
nudging down as we expected in such a large market, but it remains at
comfortably over 40% and AWS alone generated revenue growth of $1.2
billion over the last four quarters.”